Prairie wheat bids holding steady

Western Canadian wheat cash bids held relatively steady during the week ended Jan. 6, with slight increases reported from some elevators and slight declines at others.

Average spot bids for CWRS (Canada Western Red Spring, 13.5 per cent protein) across Manitoba, Saskatchewan and Alberta came in Monday at around $164 per tonne, or $4.47 per bushel, based on pricing available from a cross-section of delivery points, which compares to $165 per tonne, or $4.51 per bushel the week prior. Basis levels were steady from the week prior at an average of $67 relative to the futures.

Average CPSR (Canada Prairie Spring Red) values were at $145 per tonne ($3.95/bu.), up from $142 per tonne ($3.87/bu.) a week ago. Average basis levels were unchanged a discount of $91 compared to futures.

U.S. wheat futures were steady to higher, seeing a correction off of recent lows.

The March spring wheat contract in Minneapolis, off of which most CWRS contracts in Canada are based, was quoted at US$6.305 per bushel on Monday, up a quarter cent compared to the previous week.

Kansas City hard red winter wheat futures, which are now traded in Chicago, are more closely linked to CPSR in Canada. The March Kansas City wheat gained 9.25 cents over the week, settling Monday at US$6.44 per bushel. The winter wheat futures outpaced spring wheat to the upside, given concerns over possible winterkill to the U.S. crop.

Durum prices held relatively steady, with average spot bids declining by $1, to $178 per tonne ($4.83/bu.).

– Phil Franz-Warkentin writes for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting.